What could Andy Burnham’s premiership mean for the UK?

Andy Burnham became Prime Minister on 20 July 2026, following Sir Keir Starmer’s resignation and Mr Burnham’s election as Labour leader.

Having returned to Parliament as MP for Makerfield in June, the former Mayor of Greater Manchester has moved quickly to establish the priorities of his new government.

While many of the longer-term tax and spending decisions will become clearer at future fiscal events, the first few weeks of the Burnham government have already provided some indications of what businesses and taxpayers can expect.

The economy and financial markets

The new Prime Minister has inherited a challenging fiscal environment, with pressure on public finances continuing to shape the Government’s room for manoeuvre.

Mr Burnham has committed to working within the Government’s fiscal rules, while arguing that economic policy should focus more strongly on growth, investment and improving living standards across all regions of the UK.

One of his first measures was to announce the removal of VAT from domestic electricity bills from 1 October 2026 for the remainder of the financial year. The Government says the measure will be funded through the cancellation of the Digital ID programme, with any longer-term decisions to be considered alongside the Budget and an Office for Budget Responsibility forecast.

The Government has also placed reindustrialisation and regional economic growth among its priorities, with the Prime Minister promising to support growth and employment across the country.

Devolution

Devolution, which was central to Mr Burnham’s time as Mayor of Greater Manchester, has quickly become a major theme of his premiership.

The Government has opened ‘No10 North’ in Manchester and revived the National Economic Council, bringing together ministers and regional mayors.

More significantly, the Government has announced plans to give mayors greater control over funding, including allowing mayoral areas to retain a share of Income Tax and business rates revenues generated through economic growth.

The aim is to give local leaders greater influence over areas including transport, housing, skills and economic development.

For businesses, this could mean an increasingly important role for regional and mayoral authorities in determining local economic priorities and investment.

Small businesses and pubs

Support for pubs, clubs and live music venues has also moved quickly from a policy proposal to a Government commitment.

The Prime Minister has announced an additional 20% cut to business rates bills for eligible pubs, social clubs and live music venues in England from April 2027.

The Government estimates that the measure could save a typical pub around £1,100 next year.

This comes alongside existing support for eligible pubs and live music venues during 2026/27 and forms part of a wider focus on supporting high streets and local businesses.

Further details, including restrictions applying to the largest live music venues, are expected to be confirmed at the Budget.

Pensions and welfare

Reducing economic inactivity is expected to remain an important part of the Government’s economic agenda.

In his first speech as Prime Minister, Mr Burnham highlighted the need to help more young people into employment, including through changes to education and additional support.

He has linked increasing employment with reducing pressure on the welfare system and meeting the Government’s fiscal rules.

Social care has also emerged as an early priority. The Prime Minister has committed his Government to developing a more integrated health and social care system, although the detail of how reforms will be structured and funded remains to be seen.

Businesses will therefore be watching closely for future changes affecting employment, skills, welfare and workforce participation.

Taxes

Tax policy remains one of the biggest areas to watch.

Although a number of tax ideas were discussed before Mr Burnham entered Downing Street, the distinction between previous proposals and confirmed Government policy is now particularly important.

One immediate tax change has already been announced, with VAT on domestic electricity bills being removed from 1 October for the remainder of the financial year.

Beyond this, businesses and individuals will need to wait for future fiscal announcements for greater clarity over the Government’s wider approach to Income Tax, Corporation Tax and National Insurance.

Previous suggestions associated with Mr Burnham, including changes to Income Tax rates, should not necessarily be treated as Government policy unless formally confirmed.

Housing

Housing has already emerged as another priority for the new Government.

On his first day in office, Mr Burnham announced a national drive to tackle long-term rough sleeping, backed initially by an additional £340 million of funding.

The Government says the first phase will provide 1,200 homes and intensive support for at least 3,000 people.

Mr Burnham has also committed to building more council homes, with local and regional leaders expected to play an important role in delivering housing policy as part of the Government’s wider devolution agenda.

Questions remain over the longer-term direction of property taxation. Mr Burnham has previously discussed alternatives to the existing Council Tax system, but significant reforms in this area would require further policy detail before their potential impact on households could be assessed.

What should businesses look out for?

The first weeks of the Burnham government have already seen several policies move from discussion to action.

Greater regional devolution, changes to business rates, support with energy costs, investment in housing and a renewed focus on employment and skills are beginning to define the Government’s economic approach.

However, some of the bigger questions – particularly around Income Tax, Corporation Tax, National Insurance, welfare and property taxation – remain unresolved.

For businesses and individuals, the next Budget is therefore likely to be particularly important in establishing the Government’s longer-term tax and spending priorities.

At SJC Chartered Accountants, we will continue to monitor developments and explain what confirmed tax and economic policy changes could mean for businesses and individuals.